Financial Hardship
This section will provide overview of the financial hardship provision in the code. It is recommended that anyone seeking financial hardship review the financial hardship section in the code for full details (Section 10).
“Financial Hardship” means you are having difficulty meeting your financial obligations to an insurer.
If you owe money to a general insurer and/or are experiencing financial hardship, you may ask an insurer to assess whether you are entitled for assistance.
NOTE: The Financial hardship provisions in the Code of Practice do not apply to unpaid general insurance premiums. If an insurer determines that you are entitled to financial hardship assistance for a debt owed, they will work with you on a payment arrangement, for example, extending a due date for payment, paying amount in installments or paying a reduced lump sum.
More information
An insurer will provide you with more information about its Financial Hardship process, which will include an application form for assistance and information about their privacy policy relating to the use and disclosure of your information.
Your Account Manager will assist you with the process throughout and with contacting the insurer to request a Financial Hardship application form and for details on where to send your application.
The following information may be of use to an insurer when assessing your request for Financial Hardship assistance:
Personal Details (required for your application)
Policy number / claim number / reference number;
Name of insurer;
Your full name;
Your address and contact details;
Marital status;
Number and age of dependents;
Occupation;
Employment status (Full-time, Part-time, self-employed, unemployed);
Employer; and
If you would like to nominate a representative to handle your application on your behalf (including their details).
Financial Details
A. Income you receive per fortnight
Wages after tax
Centrelink benefits
Rent received
Child maintenance/support
Other
B. Expenses you pay per fortnight
Rent and/or mortgage payments
Other loan payments
Credit card payments
Child support payments
Motor vehicle expenses
Living costs
Hospital/medical
Other
C. Total Income – Total Expenses per fortnight (A-B)
Supporting Documentation
You may be required to provide documentation to support your application for Financial Hardship including a description of your financial circumstances.
The following documents may assist with your application if you choose to attach them:
Bank Statements;
Centrelink Statements;
Payslips;
Letter from doctor confirming inability to earn income due to disability, injury, illness or caring for sick family member
Overdue medical bills/medical expenses
Bank notice re: unpaid overdraft or repossession of mortgaged property
Eviction notice
Copies of unexpected bills/payments
Pending disconnection of essential services
Letter from former employer confirming loss of employment
Letter from charitable organisation re loss of employment or inability to provide for basic necessities
Repossession notice of essential items, eg car, motorcycle
Funeral expenses
Notice of impending legal action
Complaints
If you are unable to reach an agreement with an insurer about Financial Hardship assistance, or if you are unhappy with any aspect of the application process, you may make a complaint to the insurer.
The insurer will make available to you information about the complaints process.
More information can also be found at Code of Practice (COP) – Insurance Council of Australia.